Lipella Pharmaceuticals Inc., a Delaware-based company, has received a notification from The Nasdaq Stock Market LLC regarding non-compliance with certain listing rules. The issue stems from the company's issuance of Series C voting convertible preferred stock and warrants as compensation to its investment bank, related to private placement transactions conducted between December 2024 and March 2025. Nasdaq has determined that Lipella failed to comply with the Shareholder Approval Rule, which mandates prior shareholder approval for issuing 20% or more of outstanding shares at a price below the Minimum Price, and the Voting Rights Rule, which protects existing shareholders' voting rights. Lipella has until May 19, 2025, to present its case to the Nasdaq Hearings Panel and is taking steps, including planning a shareholder meeting, to address the deficiencies. The company's common stock continues to trade on the Nasdaq Capital Market, but there are no assurances of regaining compliance or maintaining future compliance with Nasdaq standards.
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